A new study from the University of Oxford suggests that Uber’s dynamic pricing model, introduced in 2023, has led to a significant shift in its revenue distribution. The research indicates that while passengers are paying more for rides, drivers are experiencing a decline in their earnings, with Uber’s commission increasing.
Uber’s Dynamic Pricing Under Scrutiny
Researchers from the University of Oxford’s Computer Science department analysed over 1.5 million Uber trips in the UK between 2016 and 2024, involving 258 drivers. The study highlights a notable change since the implementation of dynamic pricing in 2023.
Key Findings
- Increased Fares for Passengers: Customers are now paying more per trip.
- Decreased Driver Earnings: Drivers’ hourly income has fallen from over £22 to just over £19.
- Higher Uber Commission: Uber’s commission has risen from approximately 25% to 29%.
- More Unpaid Time for Drivers: Drivers are spending more time waiting for rides without pay.
Professor Reuben Binns, the lead author of the study, explained that the higher the value of a trip, the larger the cut Uber takes, meaning drivers earn less per minute as customer payments increase.
Uber’s Response
Uber has disputed the study’s findings, stating that some claims are "totally false" and that they "do not recognise the figures in this report." A spokesperson for the company emphasised that drivers are shown their potential earnings before accepting a trip. They also highlighted that UK drivers earned over £1 billion between January and March of this year.
Uber maintains that the percentage it keeps has remained stable for several years on average, though it can vary weekly and between drivers. The company expressed pride that many drivers continue to choose to work on the platform as demand grows.
Study Commissioned by Workers Information Exchange
The study was commissioned by the Workers Information Exchange, an organisation led by former Uber driver James Farrar. Farrar previously successfully campaigned for Uber drivers to be recognised as workers rather than self-employed individuals.
